China and USA
Revenue and Net Income Growth of 70% in 2007 and 2008
Company exploring LNG options
US listed China Natural Gas, Inc. (OTC Bulletin Board: CHNG – News), a provider of compressed natural gas (CNG) for vehicular fuel in Xi'an, China, has outlined the company’s financial expectations for 2007 and 2008. The company has 15 retail CNG filling stations currently but expects to have 23 stations operating by year-end and 42 operational at the end of 2008.
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, stated, "We are very pleased with the progress we are making as we capitalize on the opportunity to provide more and more compressed natural gas to the local Chinese market."
For the year 2007, the Company expects revenue to increase 70% to $32.0 million from $18.8 million in 2006. The Company expects net income to increase 70% to $9.3 million in 2007 from $5.5 million in 2006. For the year 2008, the Company anticipates revenue and net income growth of at least 70%.
"The financial guidance we are formally initiating today primarily reflects performance from and growth of our retail CNG business and is based on operating 23 revenue generating retail CNG filling stations by the end of 2007 and 42 revenue generating retail CNG stations by the end of 2008. At this time, we are not accounting for the potential sale of Liquefied Natural Gas (LNG) in our financial guidance, although we continue to actively explore this compelling opportunity," concluded Mr. Qinan Ji.
About China Natural Gas, Inc.
China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas company publicly traded in the US. It currently owns and operates a 120 kilometer long compressed natural gas pipeline in Xi'an, China, a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. CHNG has three profitable business segments: end user delivery of natural gas services to residential, commercial and industrial customers; wholesale natural gas to retail natural gas filling stations; and retail natural gas at company-owned natural gas filling stations. The city of Xi'an has approximately 20,000 Taxis, 3,000 buses and 2,000 special purpose vehicles that are powered by compressed natural gas.
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